| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1142247 | Operations Research Letters | 2015 | 4 Pages |
Abstract
We derive the closed-form solution that characterizes the equilibrium in the circular city model, when competing firms have heterogeneous production costs. Tractability issues in this setting are well-known and have not been resolved in prior work. In this paper, the equilibrium solution illustrates the effects of production costs on firms’ strategic decisions and profits and on consumer surplus.
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Mei Lin, Ruhai Wu,